The Income Tax Act of 1961 describes the deduction towards rent paid in Section 80GG. If a taxpayer secures any income under Section 10(13A) of the Act, he will deduct any excess expenditures he makes of his total income. If these additional expenses do not exceed Rs 5,000 per month or Rs 25,000 of his total income for the year, then he will be allowed to deduct the extra 10% expenditures he makes concerning any filed or unfiled accommodation that he has taken for his residence. Read also more: http://saginfotech.wikidot.com/section-80gg-deduction-rent-paid